For some, there was no tax break

The sales-tax holiday for back-to-school shoppers ends today, but not all vendors participated.

August 13, 2007|By Jeannette Rivera-Lyles, Sentinel Staff Writer

Florida's tax holiday is not what brought the Gonzalez family to Orlando from Mexico, but they wish they could've taken advantage of it.

On Sunday, brothers Daniel and David Gonzalez, along with their wives and kids, went shopping for souvenirs. At least two vendors at the International Drive Flea Market charged them sales tax on the six $9.99 T-shirts they bought.

"We didn't know there was a tax holiday," said Daniel Gonzalez. "Now I wonder if they're taking advantage of us because we're not from here."

Although intended to primarily benefit back-to-school shoppers, the temporary tax exemption applies to all clothing and footwear items that cost less than $50. It also covers books and school supplies under $10.

The tax holiday, mandated by the Legislature, started Aug. 4. It ends today.

The Orlando Sentinel randomly checked several vendors on International Drive on Sunday to see whether the tax holiday was being observed. It found that many owners, particularly those who have small businesses, seemed oblivious to the tax break or claimed not to understand the rules.

Employees at larger chain stores, by contrast, were well informed. At some of those locations, such as Factory Brand Shoes, signs touting the tax holiday were posted throughout.

A woman who identified herself as the owner of a shoe booth at the flea market said she was charging sales tax because she didn't know better.

"We don't sell school supplies," said the woman, who declined to give her name. "These people are tourists. These aren't things they're buying because of the new school year."

Mehar Sultan, owner of Gift Emporium on International Drive, blasted the Florida Department of Revenue for what she saw as its failure to communicate with small-business owners.

"I've heard about the tax holiday in the news, but I didn't know it applied to me," said Sultan, who sells T-shirts and shorts along with key chains and other trinkets. "I didn't get any correspondence on this, no phone calls, no nothing. How was I supposed to know?"

Sultan said she would pay the state all the sales tax collected.

The Florida Department of Revenue, which collects sales taxes from retailers, says on its Web site that it sent letters about the tax holiday to all registered vendors the first week of June.

The Web site indicates that vendors may not opt out of the tax holiday, but it doesn't say what penalty -- if any -- would be leveled against violators. It instructs vendors to remit to the state any tax collected "by mistake" during this period if attempts to refund customers are unsuccessful.

A spokesperson for the Department of Revenue could not be reached Sunday.